THE PERCEIVED VALUES OF GENERATION Z IN INDONESIA TOWARDS A LOCAL BRAND: ILKA’S PRICING STRATEGY

• Main Author: Agatha, Aurelia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57690
• Institution: Institut Teknologi Bandung

Pricing strategy of a newly established business or local brands in Indonesia becomes very important. Indonesia is still believed as a developing country which the society still prefer global brands and products more than their own locals. But in these present days, people are beginning to give the locals chances and started to be proud to wear local products. The problem is that local brands are either set their prices too high because they have the over confidence to sustain in the market or set their prices too low because they are afraid that the society cannot accept them in competition with global brands. The study is researching what are the perceived values of the customers so that a right pricing strategy can be made and suit the market exactly. By using descriptive and multiple linear regression analysis, functional, economic, emotional, social and service dimension are taken as the variables towards the perceived values that will determine the pricing strategy of ILKA, one of local brands, as the subject of this research. Giving questionnaires to 400 generation Z as the sample since those who are born between 1995 to 2010 are ILKA’s target market. The result shows that generation Z nowadays care most about functional value and do not really consider their social life from a product.